There is no single national leave entitlement for private-sector office staff in India. Leave is shaped by three layers: the state Shops and Establishments (S&E) Act where the employee works, central law for specific situations, and your own policy, which can be more generous but not less.
Layer 1: state Shops and Establishments Acts
Each state's S&E Act (for example the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, or the Karnataka Shops and Commercial Establishments Act, 1961) sets earned or privileged leave, casual leave, sick leave, national and festival holidays, weekly offs, carry-forward and encashment rules. The numbers differ — do not copy one state's policy to another. Read the current Act and rules on each state's labour department site.
Layer 2: central law
- Maternity leave: 26 weeks paid for the first two children; 12 weeks thereafter; 12 weeks for adoptive and commissioning mothers of a child under three months.
- OSH Code annual leave: the Occupational Safety, Health and Working Conditions Code, 2020 provides annual leave with wages of one day for every 20 days of work for workers who have worked 180 days or more in a calendar year, for establishments it covers.
- National holidays: Republic Day, Independence Day and Gandhi Jayanti are observed nationally; states notify additional festival holidays.
There is no central statutory paternity leave for the private sector; it is a policy choice.
Layer 3: your policy
- List every state where you have employees, including remote ones.
- Tabulate each state's minimums for each leave type.
- Set a company policy at or above the highest minimum to keep one simple rule set, or run state-specific policies if cost matters more than simplicity.
- Write down accrual, carry-forward, encashment and the approval path. A leave policy fails at the approval step more often than the entitlement step — see a leave approval workflow that scales beyond email.
Remote work and leave
An employee's state of work, not the head office, usually drives which S&E Act applies. Keep each person's work location current in the HR record.
Sources and review date
Facts in this article were checked against the official sources below as of 8 October 2026. Rates, wage ceilings, due dates and forms change by notification, so confirm on the source before acting.
- Ministry of Labour & Employment (labour.gov.in)
- Labour Codes page, Ministry of Labour & Employment
- State labour department websites for each state where you employ staff
- India Code (indiacode.nic.in) — official text of central Acts
This is a general explainer written by the Kyrospect editorial team, not legal, tax or payroll advice. Applicability depends on your state, headcount, establishment type and contracts — confirm with a qualified professional or the authority concerned.
Where Kyrospect fits: Kyrospect HRMS holds employee records and Tracking records shift hours on the same identity. It does not calculate or file PF, ESI, professional tax, TDS or gratuity today — payroll is planned and gated on statutory compliance work. See the roadmap for current status.